Halfords Share Discussion Threads

[yump] 22/1/2019 15:44

The detail wrt cycling is interesting with Halfords. They had strong growth in adult bike sales previously, so curious to see it flattening.

imo that is not anything to do with online and more likely to be that people go to Halfords for their first bike, then they talk to other cyclists that have brands other than Boardman.

I think Halfords need a newer brand. After all most people won't know who Boardman is, as they don't watch the Tour (he commentates), so he's very out of date as a mass-market brand.

Pendleton perhaps, except that most women I know who have got one, can't believe how heavy they are, trying to get them in and out of the house/shed. Then you stick them on a Trek or Giant hybrid which might only cost £350 and they wonder why on earth they bought the Pendleton.

These are not women who are short of a few bob. They just don't know what they're buying.

[gf13] 18/1/2019 14:31

hxxps://simplywall.st/stocks/gb/retail/lse-hfd/halfords-group-shares/news/an-intrinsic-calculation-for-halfords-group-plc-lonhfd-shows-its-36-2-undervalued/

[gf13] 18/1/2019 14:30

The total value is the sum of cash flows for the next five years and the discounted terminal value, which results in the Total Equity Value, which in this case is UK£661m. To get the intrinsic value per share, we divide this by the total number of shares outstanding, or the equivalent number if this is a depositary receipt or ADR. This results in an intrinsic value of £3.35.

[wynmck] 17/1/2019 13:01

Chmn buys 80k at 2.395p

[yump] 17/1/2019 12:55

That is not the point though is it ? I can go to a large supermarket to get ordinary carrots at 39p instead of going to Tesco Express and spending £1.15, but how many people still just get them from Tesco ?

Also price-elasticity of demand does not apply to every product.

[gbh2] 16/1/2019 19:37

The problem with Halfords is their pricing, most of what they sell can be purchased elsewhere at a significant discount.

[poikka] 16/1/2019 13:55

spob - "no dipstick :)"

Probably get one down at Halfords ;)

[redbaron10] 16/1/2019 10:38

Seems to be a good topping up of the share price today!

[spob] 16/1/2019 10:22

it would take your sister a long time to top up the oil on my car

no dipstick :)

[poikka] 16/1/2019 10:18

Don't like the chat about a divi cut. I don't see the need for it, but there'd be even less need if JMcD hadn't handed out a special divi just before she left, and no doubt trousered a few bob herself in so doing.

I'd say that they're ding the right things, especially with regard to siting Autocentres alongside retail. As said, plenty of folk like having someone to do the bits and bobs for them. And plenty of people haven't got a clue how to do things for themselves. My sister once tried topping-up the engine oil and wondered why it was so difficult and time-consuming - she was using the dipstick hole.

Anyway, all retailers are struggling to grow. Halfords has good cashflow and fairly low debt, which means (leaving aside my MASSIVE irritation at McD's generosity with the SD) that they should be able to grow the business. No divi increase for a while, though - but that's ok.

[argylerich] 16/1/2019 10:03

Agreed, I wouldn't either. But a large number of people do and get the member of staff put it in for them too.

[spob] 16/1/2019 09:56

not sure about others but ....

I would not pay 50% more for my engine oil via Halfords click and collect :)

[argylerich] 16/1/2019 09:18

"The internet is slowly killing Halfords"

That's where I would beg to differ Spob.

Mike Ashley (who possibly knows a thing or two about retail) espouses click and collect as being the holy grail for physical retailers.

Halfords run an 80% strike rate in this area.

I know that alone is not going to fuel a growth rate moonward, but it does underscore that this business is still functional and has a certain value.

[tsmith2] 16/1/2019 09:06

Way too cheap!

[spob] 16/1/2019 08:33

The internet is slowly killing Halfords.

Which is why the very best it can do is stand still

and the worst is fail completely


There are very few things that I would buy from Halfords now, where as I would have done in the past.

On a very rare occasion when I need something "right now" I will reluctantly go to Halfords and pay more than I would on the internet.

But 99% of the time I will buy what I want in advance from Ebay or Amazon for a lower price including postal costs.


example

[toffeeman] 16/1/2019 08:09

It was in yesterday's Times

[argylerich] 15/1/2019 17:54

Good historic article Toffeeman, nice find and thanks for sharing

[hairballradical] 15/1/2019 12:31

If you're looking for a share that might hold up under a no deal Brexit then this has to be a contender.

Assuming a 2-3 year blip in the economy with reduced car sales, increased bike sales, increased spend on maintaining existing car, holidays in UK and not driving abroad etc.

On the other hand adeal will see a short term rise of the UK stockmarket which is currently undersold.

DYOR

HBR

[yump] 15/1/2019 11:15

1. Evans shops are in stupid places and there is hardly any overlap between bike stock there and the bike stock at Halfords. So price competition is irrelevant.

2. Cycling will continue to rise in popularity - the masses are not buying bikes because they've watched the Tour de France. Considering that there is good employment and that more people are cycling, imagine what will happen if we hit a proper downturn.

I service bikes and there has been an increasing number of people wanting new bikes checked and rejuvenating bikes that have sat in garages. Fitness, lack of cash, whatever the cause.

3. Internet competition in the sale of bikes is irrelevant because you can divide people into those that are OK with buying a bike online and those for whom it sounds like a disaster waiting to happen and who will order to collect from Halfords. Halfords strategy is designed to capture that market segment, not the people like me who are happy to buy a bike online and then set it up myself.

[gf13] 15/1/2019 08:58

HSBC have set their target price at 340 GBX on its stock.

[alamaison5] 14/1/2019 09:46

Toffe: 213p fisrt then 200p for me buying, lol